Mexico Surges to Record Highs

Mexico's stocks rallied to their second consecutive all-time high Monday, continuing to benefit from strong second-quarter results by wireless provider
America Movil SA
and other major issuers.

The market's key IPC index jumped 1.2% to 14582.50.

America Movil's L shares rose 2.4% to 12.06 pesos. That was the highest closing level since the company split from Mexican fixed-line telephone operator
Telmex
in 2001.

On Thursday, America Movil said it doubled its second-quarter net profit to 7.90 billion pesos while adding a record 7.4 million mobile subscribers in the 11 markets it serves in the Americas. The explosive growth brought the carrier's client roster up to 73.8 million wireless users.

The L shares of Telmex also recovered from some weakness last week, rising 1.4% to 10.37 pesos.

Bear Stearns said the current share price seems unattractive despite a positive growth outlook, adding, "We remain on the sidelines for ICA until we get better visibility on backlog/revenue growth needed to support future earnings/stock performance."

Brazil's stocks recovered from an earlier slump as investors reacted positively to the resignation of a congressman with alleged links to a government graft operation. Investors were pleased with the resignation of Congressman Valdemar Costa Neto, after the lawmaker took "full, personal responsibility" for off-the-books campaign donations

The benchmark Ibovespa stock rose 1% from Friday's finish at 26042.

Stellar performances by
Petrobras
and other Brazilian American Depositary Receipts also floated the heavyweight index, despite a fall in the Dow Jones Industrial Average.

But record high international oil prices trimmed gains on the Ibovespa, traders said. The New York Mercantile Exchange reported crude oil closed the session at $61.30 per barrel after reaching $62.30 in intraday trading.